Public Hearing: Community Needs Assessment FY 2013-2014 Action Plan

Jonathan Tomko, AICP Senior Research Analyst, NHCD

Presentation to Community Development Commission

Thursday, April 4, 2013

I. What is Affordable Housing and Household Affordability?

II. NHCD’s Mission and Financial Overview

III. What is a Community Needs Assessment?

IV. Fitting the Pieces Together – HUD’s Planning Process

V. Consolidated Plan – Key Policy Initiatives

VI. Data Profile Update and Market Conditions

VII. Community Development Week

VIII.Important Dates Overview

IX. Action Plan Community Input – Public Hearings

– Neighborhood Meetings

– Additional Opportunities

X. Questions

Presentation Outline

NHCD: Neighborhood Housing and Community Development HUD: U.S. Department of Housing and Urban Development

What is Affordable Housing and Household Affordability?

Household Affordability (Priority Program #6):

Household affordability is about the costs of housing, utilities, taxes and transportation.

Definition from Imagine Austin

Affordable Housing:

Housing in which the occupant(s) is/are paying no more than 30 percent of his or her income for gross housing costs, including utilities.

Definition from HUD

Based on Median Family Income:

30% of Median Family Income: $15,400 for 1-person household; $21,950 for a 4-person household 50% of Median Family Income: $25,650 for 1-person household; $36,600 for a 4-person household 80% of Median Family Income: $41,000 for 1-person household; $58,550 for a 4-person household Per HUD as of December 2012 for the Austin-Round Rock-San Marcos MSA

NHCD’s Mission and Financial Overview Mission: To provide housing, community development and small business development services to benefit eligible residents, so they can have access to livable neighborhoods and increase their opportunities for self-sufficiency.

Housing Development

$6,416,982 47.9%

Support Services

$4,353,294 32.5%

Community Development

$2,033,556 15.1%

Debt Services $605,774

4.5%

Uses of New

Funds

CDBG/ HOME Grants

$9,122,015 68.1%

Sustainability

Fund $3,620,194

27.0%

Housing Trust Fund $602,132

4.5%

UNO Housing

Trust Fund $55,265

0.4%

Sources of New Funds

City of Austin Financial Overview FY 2012-2013 Total New Funding $13,399,606

Local Funding Sources: • Sustainability Fund • Housing Trust Fund • UNO Housing Trust Fund

Federal Funding Sources: • Community

Development Block Grant (CDBG)

• HOME Investment Partnership Block Grant

Funding Sources and Utilization To accomplish our mission, NHCD directly administers a variety of programs to serve the community's housing, community development and economic development needs and provides grant funding to various agencies and non-profit organizations.

The entire $55 million from the 2006

Affordable Housing General Obligation

(G.O.) bond funds being expended or

otherwise committed to projects

CDBG and HOME Federal funding levels

have been reduced by almost 40% from

amounts received 5 years ago –

We have been notified to expect another

5% this Fiscal Year

The Action Plan encompasses 10 key areas, many of which require engagement to help prioritize needs:

What is a Community Needs Assessment?

- Resources and Objectives

- Annual Objectives

- Activities to be Undertaken

- Outcome Measures

- Geographic Distribution

- Affordable Housing

- Public Housing

- Homeless and Other Special Needs

- Barriers to Affordable Housing

- Other Actions

Fitting the Pieces Together HUD’s Planning Process

Goals • Needs Assessment • Geographic Area • Funding Sources

(Federal and Local)

1. Geographic Priorities

2. Priority Needs

3. Market Conditions

4. Anticipated Resources

5. Institutional Structure

The NEW HUD CPD Maps tool is being made publicly available to community stakeholders:

http://egis.hud.gov/cpdmaps/

5 Year ’09-’14 Consolidated Plan

’09-’10

Action Plan

’08-’09 CAPER

’10-’11

Action Plan

’9-’10 CAPER

’11-’12

Action Plan

’10-’11 CAPER

’12-’13

Action Plan

’11-’12 CAPER

’12-‘13 CAPER

’13-’14

Action Plan

CAPER: Consolidated Annual Performance and Evaluation Report

2009-2014 Consolidated Plan Key Policy Initiatives

• Promote Core Values – Long-Term Affordability

– Geographic Dispersion

– Deeper Levels of Affordability

• Encourage Private Sector Development

of Affordable Housing – Developer Incentives

– Public/Private Partnerships

• Expand Alternative Revenue Sources – General Obligations Bonds (2006: $55M)

– Housing Trust Fund

– Shared Equity Model

• Provide Leadership – Leadership and Education

– Housing Market Study

– Comprehensive Plan (Imagine Austin)

– Council Initiatives and Policies

Data Profile Update

Market Conditions How has Austin Changed?

Extremely Low Income

0-30% MFI

Very Low Income

30-50% MFI

Low Income

50-80% MFI

Moderate Income

80-120% MFI

Middle Income

120%-250% MFI

High Income

250%+ MFI

< $21,950 $21,950 to $36,600

$36,600 to $58,550

$58,550 to $87,840

$87,840 to $183,000

> $183,000

Change in Austin Household Incomes 2005-2011

Source: U.S. Census American Community Survey Table DP03

*Assuming Standard Distribution within Census Data Income Groups Each Equals an Addition of Roughly 1,000 Households

Each Equals a Reduction of Roughly 1,000 Households

HH’s 2005 13,492 50,195 59,234 46,551 50,938 14,231 291,693

Total

Needed: We are continuing to focus on deep affordability < 50% MFI as

data indicates these households are not growing with Austin’s

rapid growth as a result of household affordability

HH’s 2011 12,989 51,422 67,150 57,951 65,200 21,832 333,593

Change -503

-3.7%

1,227

+2.4%

7,916

+13.4%

11,400

24.5%

14,262

+28.0%

7,601

+53.4%

+41,900

14.4%

# of 2011 HH

to keep 14.4%

growth rate 15,435 57,425 67,763 53,254 58,273 16,281 N/A

Shortage/

Surplus -2,446 -6,001 -614 4,697 6,927 5,552

Affordable Rental Housing Supply Gap

750,500 people

307,000 households

54% renters 166,000 households

27% earn <$20,000 45,000 households

4% of rental units that are affordable 7,150 units

Gap of 37,600 Rental Units

Source: Comprehensive Housing Market Study March 2009, Prepared by BBC Research and Consulting

v.

=

Affordable Homeownership Supply Gap

750,500 people

307,000 households

46% owners

141,000 households

Renters earning <$35,000 3% of detached units are affordable 10% of attached units are affordable

Renters earning <$50,000

16% of detached units are affordable 36% of attached units are affordable

Renters earning <$75,000 44% of detached units are affordable 64% of attached units are affordable

Supply Available to

Renters wanting to be

Owners

Affordable Housing Gap

Community Development Week April 1st through April 5th 2013

Community Development Week is: - An annual campaign designed by the National Community Development Association (NCDA)

- Focuses local as well as national attention on the importance of the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Programs

This year in celebration of Community Development Week, we launched a campaign going on all week showcasing how we are able to impact so many lives!

www.austintexas.gov/blog/5-ways-change-life

NCDA is a national non-profit organization comprised of local government members that administer community development, affordable housing, and economic development programs, including the CDBG and HOME programs.

Important Dates Overview FY 2013-2014 Action Plan

March 20 Community Needs Assessment Period Begins

April 1-26 Meetings with various Commissions, Neighborhood Groups, and Partner Organizations

April 1 - 5 Community Development Week

April 4 Community Development Commission (CDC) Public Hearing on Community Needs Assessment

April 11 City Council Public Hearing on Community Needs Assessment

April 26 Community Needs Assessment Period Ends

June 1 30-Day Public Comment Period on Draft Action Plan Begins

June 18 Community Development Commission (CDC) Public Hearing on Draft Action Plan

June 20 City Council Public Hearing on Draft Action Plan

July 1 30-Day Public Comment Period on Draft Action Plan Ends

July 9 CDC Final Recommendations on Draft Action Plan

August 8 City Council Takes Action on Final Action Plan

August 15 Action Plan due to HUD

Action Plan Community Input: Public Hearings

I. Community Needs Assessment

6:30pm, Thurs. April 4, 2013:

Community Development Commission

301 W. 2nd Street, Austin City Hall

4:00pm, Thurs. April 18, 2013:

Austin City Council Meeting 301 W. 2nd Street, Austin City Hall,

Council Chambers

II. DRAFT

Action Plan

6:30pm, Thurs. June 13, 2013:

Community Development Commission

301 W. 2nd Street, Austin City Hall

4:00pm, Thurs. June 20, 2013:

Austin City Council Meeting 301 W. 2nd Street, Austin City Hall,

Council Chambers

Action Plan Community Input: Additional Opportunities

SpeakUp Austin Online Forum:

https://austintexas.granicusideas.com/ideas

“Completing the Picture of Austin’s Needs”

E-mail: Public Comments may be submitted to

NHCD@austintexas.gov

Mail: Public Comments my be submitted via mail to

NHCD ATTN: Action Plan P. O. Box 1088 Austin, Texas 78767

Staff Presentations: NHCD Staff are available to make presentations to outside organizations and groups

QUESTIONS?

City of Austin

Neighborhood Housing and Community Development Office

512.974.3100

www.austintexas.gov/housing